Automotive Coatings: Unveiling Opportunities and Trends in OEM and Refinish Markets

What are the current dynamics in the car paints industry?

On the global scale, the automotive coatings industry is witnessing a dynamic evolution. This is largely driven by technological advancement, legislative standards, and consumer preferences. Innovative products with better performance attributes such as enhanced corrosion resistance, UV radiation durability, and aesthetic appeal are ascending the demand ladder. Also, eco-friendly water-based coatings are gaining traction due to stringent environmental regulations.

What opportunities are opening up in original equipment manufacturing (OEM)?

In the OEM segment, growth is largely pegged to automotive production rates which have experienced a recovery trend after an initial slump caused by COVID-19 disruptions. Moreover, vehicle manufacturers are increasingly adopting high-value coatings that provide extended warranty periods and superior finishes. This investment in quality over cost is paving the way for high revenue returns. Additionally, advancements in e-coating and powder coating techniques present substantial growth opportunities.

What is the outlook for the refinish markets?

In the refinish market, demand is primarily driven by the rate of vehicle collisions, aging fleets, and the trend of vehicle customizations. Advanced countries with strict quality standards and emerging nations with rising car ownership are among key growth locales. Furthermore, there has been an upsurge in demand for quick repair services which use fast-drying and easy-to-apply paints. Hence, manufacturers who are successful at achieving technical improvements in these areas can expect enhanced market positioning.